Westlake Chemical Corporation Announces Record 2017 Fourth Quarter
and Full Year Results

Record quarterly net income of $802 million, or $6.15 per diluted
share; $211 million, or $1.62 per diluted share, excluding a one-time
tax benefit

Record annual net income of $1,304 million, or $10.00 per diluted
share; $713 million, or $5.46 per diluted share, excluding a one-time
tax benefit

Record quarterly and annual net cash provided by operating activities
of $575 million and $1,538 million, respectively

Record annual income from operations and EBITDA of $1,233 million and
$1,841 million, respectively

February 20, 2018 06:30 AM Eastern Standard Time

HOUSTON--(BUSINESS WIRE)--Westlake Chemical Corporation (NYSE: WLK) (the "Company" or "Westlake")
today reported record net income attributable to the Company for the
three months ended December 31, 2017 of $802 million, or $6.15 per
diluted share, on net sales of $2,010 million. Net income for the fourth
quarter of 2017 included a one-time, non-cash tax benefit of
approximately $591 million, or $4.53 per diluted share. The Tax Cuts and
Jobs Act (the "Tax Act"), enacted on December 22, 2017, reduced the U.S.
federal income tax rate for corporations from 35% to 21% effective
January 1, 2018. The accounting guidance related to income taxes
requires companies to recognize the effect of tax law changes and, as
such, we provisionally revalued our deferred income tax assets and
liabilities, resulting in the tax benefit of approximately $591 million
in 2017. Net income attributable to the Company for the three months
ended December 31, 2017, excluding the benefit resulting from the Tax
Act, was $211 million, or $1.62 per diluted share. Net income
attributable to the Company for the fourth quarter of 2017 increased
$703 million, or $5.39 per diluted share, compared to fourth quarter
2016 net income attributable to the Company of $99 million, or $0.76 per
diluted share, on net sales of $1,735 million. In addition to the
benefit associated with the Tax Act, net income attributable to the
Company for the fourth quarter of 2017 also benefited from increasing
margins and higher sales volumes for all of our major products and lower
costs associated with planned turnarounds and unplanned outages,
partially offset by higher feedstock and energy costs as compared to the
prior-year period. Net sales for the fourth quarter of 2017 increased by
$275 million compared to the fourth quarter of 2016, mainly due to
higher sales volumes and prices for our major products. Income from
operations was $365 million for the fourth quarter of 2017 as compared
to $153 million for the fourth quarter of 2016. The increase in income
from operations for the fourth quarter of 2017 was mainly a result of
increased margins resulting from higher prices for all of our major
products, higher sales volumes and lower costs associated with planned
turnarounds and unplanned outages as compared to the fourth quarter of
2016. These increases were partially offset by higher feedstock and
energy costs. The fourth quarter of 2017 was negatively impacted by $9
million, or $0.05 per diluted share, in transaction and
integration-related costs and incremental interest expense associated
with the refinancing of long-term debt that will be retired in 2018.

Fourth quarter 2017 net income attributable to the Company of $802
million, or $6.15 per diluted share, increased $591 million from the
$211 million, or $1.61 per diluted share, reported in the third quarter
of 2017. This increase in net income was primarily due to the benefit
associated with the Tax Act. Net sales for the fourth quarter of 2017 of
$2,010 million were $99 million lower than the $2,109 million reported
in the third quarter of 2017. This decrease in net sales was primarily
due to seasonally lower sales volumes as well as higher planned
turnarounds and unplanned outages, partially offset by higher sales
prices for caustic soda and polyethylene. Income from operations for the
fourth quarter of 2017 of $365 million was $1 million lower than the
$366 million reported in the third quarter of 2017 as the lower sales
volumes were partially offset by increased margins from higher sales
prices for caustic soda and polyethylene.

For the year ended December 31, 2017, net income attributable to the
Company was $1,304 million, or $10.00 per diluted share, on net sales of
$8,041 million. This represents an increase in net income attributable
to the Company of $905 million, or $6.94 per diluted share, compared to
2016 net income attributable to the Company of $399 million, or $3.06
per diluted share, on net sales of $5,076 million. Net income for the
year ended December 31, 2017 increased versus the prior year primarily
due to (1) the tax benefit recorded in the fourth quarter of 2017 of
approximately $591 million, or $4.54 per diluted share, resulting from
the Tax Act; (2) earnings contributed by Axiall, which was acquired on
August 31, 2016; (3) higher sales prices for our major products,
resulting in improved margins; and (4) lower transaction and
integration-related costs associated with the integration of Axiall.
These increases were partially offset by (1) higher interest expense due
to the debt assumed as a result of the Axiall transaction; (2) higher
unabsorbed fixed manufacturing and other costs associated with
turnarounds; and (3) the realized gain in 2016 of $49 million from the
previously held common stock of Axiall. Net sales for the year ended
December 31, 2017 increased $2,965 million to $8,041 million compared to
net sales for the year ended December 31, 2016 of $5,076 million, mainly
due to higher sales contributed by Axiall and higher sales prices for
our major products. Income from operations was $1,233 million for the
year ended December 31, 2017 as compared to $581 million for the year
ended December 31, 2016, an increase of $652 million. The increase in
2017 income from operations was mainly a result of earnings contributed
by Axiall, higher sales prices for our major products and lower
transaction and integration-related costs, partially offset by higher
unabsorbed fixed manufacturing and other costs associated with
turnarounds, as compared to 2016. Pre-tax transaction and
integration-related costs for the year ended December 31, 2017 were $29
million, or $0.16 per diluted share, as compared to $104 million in 2016.

"We are very pleased with the strong performance and record results for
2017. We experienced solid demand and higher prices for all of our major
products as we benefited from sound global growth," said Albert Chao,
President and Chief Executive Officer. "As we look back on the first
full year of operations since our Axiall transaction in August 2016, we
have made great progress in integration and improvement activities as we
improve the reliability of our assets. We are also capturing the
targeted synergies and cost reductions as we execute our integration
plan. I would like to thank Westlake employees for their efforts as we
continue to make investments to improve our operations and create
additional value associated with the transaction."

Net cash provided by operating activities was a record $575 million for
the fourth quarter of 2017 and a record $1,538 million for the full year
2017. Capital expenditures for the fourth quarter of 2017 and for the
full year 2017 were $163 million and $577 million, respectively. As of
December 31, 2017, cash and cash equivalents were $1,531 million and
total debt was $3,837 million.

EBITDA (earnings before interest expense, income taxes, depreciation and
amortization) of $517 million for the fourth quarter of 2017 increased
$210 million compared to EBITDA of $307 million in the fourth quarter of
2016. EBITDA for the fourth quarter of 2017 decreased $5 million
compared to EBITDA of $522 million in the third quarter of 2017. For the
full year 2017, record EBITDA of $1,841 million was $826 million higher
than 2016 EBITDA of $1,015 million. A reconciliation of EBITDA to
reported net income and to net cash provided by operating activities can
be found in the financial schedules at the end of this press release.

OLEFINS SEGMENT

The Olefins segment reported income from operations of $166 million in
the fourth quarter of 2017, an increase of $17 million compared to
income from operations of $149 million in the fourth quarter of 2016.
This increase was mainly attributable to higher integrated margins
resulting from higher sales prices and lower costs associated with
planned turnarounds and unplanned outages, partially offset by higher
feedstock and energy costs.

Olefins segment income from operations of $166 million for the fourth
quarter of 2017 was comparable to the third quarter 2017 income from
operations.

Olefins segment income from operations was $655 million in 2017 as
compared to $558 million in 2016. This increase was mainly attributable
to higher olefins integrated product margins, primarily due to higher
sales prices for our major products, higher operating rates and lower
costs associated with turnarounds and unplanned outages as compared to
the prior year. These increases were partially offset by higher
feedstock and energy costs. Olefins income from operations for 2016 was
negatively impacted by the planned turnaround and expansion of the Lake
Charles Petro 1 ethylene unit, which was completed in the third quarter
of 2016, along with other unplanned outages.

VINYLS SEGMENT

The Vinyls segment reported income from operations for the fourth
quarter of 2017 of $216 million, which increased by $178 million from
$38 million in the fourth quarter of 2016. This increase was primarily
attributable to higher sales volumes resulting from overall higher
operating rates, higher integrated margins due to higher sales prices
and lower costs associated with planned turnarounds and unplanned
outages, partially offset by higher energy and feedstock costs as
compared to the prior-year period.

Vinyls segment income from operations of $216 million for the fourth
quarter of 2017 was comparable to the third quarter 2017 income from
operations.

Vinyls segment income from operations was $647 million in 2017 as
compared to $174 million in 2016. The $473 million increase was mainly
attributable to earnings contributed by Axiall and higher sales prices
and volumes for our major products. These increases were partially
offset by higher unabsorbed fixed manufacturing and other costs
associated with the planned turnaround and expansion at the Calvert City
facility and other turnarounds and unplanned outages, as well as higher
energy costs in 2017, as compared to 2016.

The statements in this release and the related teleconference
relating to matters that are not historical facts are forward-looking
statements. These forward-looking statements are subject to significant
risks and uncertainties. Actual results could differ materially, based
on factors including, but not limited to: general economic and business
conditions; the cyclical nature of the chemical industry; availability,
cost and volatility of raw materials and utilities, including natural
gas and natural gas liquids from shale production; the price of crude
oil; uncertainties associated with the United States and worldwide
economies, including those due to global economic and financial
conditions; governmental regulatory actions, including environmental
regulation; political unrest; industry production capacity and operating
rates; the supply/demand balance for Westlake's products; competitive
products and pricing pressures; access to capital markets; technological
developments; the effect and results of litigation and settlements of
litigation; operating interruptions; and other risk factors. For more
detailed information about the factors that could cause actual results
to differ materially, please refer to Westlake's Annual Report on Form
10-K for the year ended December 31, 2016, which was filed with the SEC
in February 2017.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial
measures, such as EBITDA and net income excluding certain tax benefits,
as defined in Regulation G of the U.S. Securities Exchange Act of 1934,
as amended. We report our financial results in accordance with U.S.
generally accepted accounting principles ("U.S. GAAP"), but believe that
certain non-GAAP financial measures, such as EBITDA, provide useful
supplemental information to investors regarding the underlying business
trends and performance of the company's ongoing operations and are
useful for period-over-period comparisons of such operations. We also
believe providing the non-GAAP measure net income excluding certain tax
benefits will help investors compare results between periods given the
one-time nature of the tax benefit associated with the Tax Act. These
non-GAAP financial measures should be considered as a supplement to, and
not as a substitute for, or superior to, the financial measures prepared
in accordance with U.S. GAAP. A reconciliation of EBITDA to reported net
income and to net cash provided by operating activities can be found in
the financial schedules at the end of this press release.

Westlake Chemical Corporation

Westlake Chemical Corporation is an international manufacturer and
supplier of petrochemicals, polymers and building products with
headquarters in Houston, Texas. The company's range of products
includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and
derivative products, PVC suspension and specialty resins, PVC Compounds,
and PVC building products including siding, pipe, fittings and specialty
components, windows, fence, deck and film. For more information, visit
the company's web site at www.westlake.com.

Westlake Chemical Corporation Conference Call Information:

A conference call to discuss Westlake Chemical Corporation's fourth
quarter and full year 2017 results will be held Tuesday,
February 20, 2018 at 11:00 AM Eastern Time (10:00 AM Central Time). To
access the conference call, dial (855) 760-8160 or (704) 288-0624 for
international callers, approximately 10 minutes prior to the scheduled
start time and reference passcode 4879787.

A replay of the conference call will be available beginning two hours
after its conclusion until 11:59 p.m. Eastern Time on February 27, 2018.
To hear a replay, dial (855) 859-2056 or (404) 537-3406 for
international callers. The replay passcode is 4879787.

Industry pricing data was obtained from IHS Markit (formerly IHS
Chemical) ("IHS"). We have not independently verified the data.

(2)

Represents average North American spot prices of ethylene over the
period as reported by IHS.

(3)

Represents average North American net transaction prices of
polyethylene low density GP-Film grade over the period as reported
by IHS.

(4)

Represents average North American contract prices of styrene over
the period as reported by IHS.

(5)

Represents average North American undiscounted contract prices of
caustic soda over the period as reported by IHS.

(6)

Represents average North American contract prices of chlorine (into
chemicals) over the period as reported by IHS.

(7)

Represents average North American contract prices of PVC over the
period as reported by IHS. Effective January 1, 2017, IHS made a
non-market downward adjustment of 15 cents per pound to PVC prices.
For comparability, we adjusted each prior-year period's PVC price
downward by 15 cents per pound consistent with the IHS non-market
adjustment.